(k) Provisions and contingent liabilities
General:

Provisions are recognised when the
Company has a present obligation (legal
or constructive) as a result of a past event,
it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation and a
reliable estimate can be made of the amount
of the obligation. The expense relating to a
provision is presented in the statement of
profit and loss, net of any reimbursement.

If the effect of the time value of money is
material, provisions are discounted using
a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a finance cost.

Warranty provisions

The Company provides warranties for
general repairs of defects that existed at the
time of sale, as required by law. Provisions
related to these assurance-type warranties
are recognised when the product is sold to
the customer. Initial recognition is based on
historical experience. The initial estimate of
warranty-related costs is revised annually.
The timing of outflows will vary as and when
warranty claim will arise being typically up to
one year.

Contingent liabilities

A contingent liability is a possible obligation
that a rises from past events whose existence
will be confirmed by the occurrence or
non-occurrence of one or more uncertain
future events beyond the control of the
Company or a present obligation that is not
recognised because it is not probable that
an outflow of resources will be required to
settle the obligation. A contingent liability
also arises in extremely rare cases where
there is a liability that cannot be recognised
because it cannot be measured reliably. The
Company does not recognise a contingent
liability but discloses its existence in the
financial statements.

(l) Retirement and other employee benefits

Retirement benefit in the form of provident
fund is a defined contribution scheme. The
Company has no obligation, other than
the contribution payable to the provident
fund. The Company recognises contribution
payable to the provident fund scheme as
an expense, when an employee renders
the related service. If the contribution
payable to the scheme for service received
before the balance sheet date exceeds
the contribution already paid, the deficit
payable to the scheme is recognised as a
liability after deducting the contribution
already paid. If the contribution already paid
exceeds the contribution due for services
received before the balance sheet date,
then excess is recognised as an asset to the
extent that the pre-payment will lead to, for

example, a reduction in future payment or a
cash refund.

The Company operates a defined benefit
gratuity plan, which requires contributions
to be made to a separately administered
fund. The contributions are made to the
Ajax Engineering Private Limited Employees
Gratuity Trust managed by a private sector
insurer viz; Kotak Mahindra Life Insurance Ltd..

The cost of providing benefits under
the defined benefit plan is determined
using the projected unit credit method.
The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have
term approximating the term of the related
obligation. Remeasurements, comprising
of actuarial gains and losses, the effect
of the asset ceiling, excluding amounts
included in net interest on the net defined
benefit liability and the return on plan
assets (excluding amounts included in net
interest on the net defined benefit liability),
are recognised immediately in the balance
sheet with a corresponding debit or credit to
retained earnings through OCI in the period
in which they occur. Remeasurements are
not reclassified to profit or loss in subsequent
periods.

Past service costs are recognised in profit or
loss on the earlier of:

• the date of the plan amendment or
curtailment, and

• the date that the Company recognises
related restructuring costs

Net interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company recognises
the following changes in the net defined
benefit obligation as an expense in the
statement of profit and loss:

• service costs comprising current service
costs, past-service costs, gains and
losses on curtailments and non-routine
settlements; and

• net interest expense or income

Further, the Company also provides other
retirement benefits to certain eligible
employees for which the costs are provided
based on the actuarial valuation using the
projected unit credit method at the year-
end. Actuarial gain/loss are immediately
taken to the statement of profit and loss and
are not deferred.

Leave encashment / Compensated
absences

Accumulated leave, which is expected to
be utilised within the next twelve months,
is treated as short-term employee benefit.
The Company measures the expected cost
of such absences as the additional amount
that it expects to pay as a result of the
unused entitlement that has accumulated
at the reporting date.

The Company treats accumulated leave
expected to be carried forward beyond twelve
months, as long-term employee benefit for
measurement purposes. Such long-term
compensated absences are provided for
based on the actuarial valuation using the
projected unit credit method at the year-
end. Actuarial gain/loss are immediately
taken to the statement of profit and loss and
are not deferred. The Company presents
the entire leave encashment provision as a
current liability in the balance sheet, since
it does not have an unconditional right to
defer its settlement for twelve months after
the reporting date.

(m) Financial instruments

A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument
of another entity.

Financial assets:

Initial recognition and measurement

All financial assets and liabilities are initially
measured at fair value. Transaction costs that
are directly attributable to the acquisition
or issue of financial assets and financial
liabilities (other than financial assets and
financial liabilities at fair value through profit
or loss) are added to or deducted from the
fair value measured on initial recognition of
financial asset or financial liability.

Subsequent measurement

• Financial assets at amortised cost

Financial assets are subsequently
measured at amortised cost using the
effective interest rate (EIR) method if
these financial assets are held within
a business whose objective is to hold
these assets to collect contractual cash
flows and the contractual terms of the
financial asset give rise on specified
dates to cash flows that are solely
payments of principal and interest on
the principal amount outstanding.
Amortised cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
amortisation is included in finance
income in the profit or loss. The losses
arising from impairment are recognised
in the profit or loss including other
comprehensive income. This category
generally applies to trade and other
receivables.

• Financial assets at fair value through
other comprehensive income

Financial assets are measured at fair
value through other comprehensive
income if these financial assets are held
within a business whose objective is
achieved by both collecting contractual
cash flows and selling financial assets
and the contractual terms of the
financial asset give rise on specified
dates to cash flows that are solely
payments of principal and interest on
the principal amount outstanding. Fair
value movements are recognised in
Other Comprehensive Income (OCI).

• Financial assets at fair value through
profit or loss

Financial assets are measured at fair
value through profit or loss unless it is
measured at amortised cost or at fair
value through other comprehensive
income on initial recognition. The
transaction costs directly attributable
to the acquisition of financial assets
at fair value through profit or loss are

immediately recognised in statement
of profit and loss.

• Derecognition

The Company derecognises a financial
asset when the contractual rights to the
cash flows from the financial asset expire
or it transfers the financial asset and
the transfer qualifies for derecognition
under Ind AS 109.

Interest income

Interest income on bank deposits and
bonds is recognised on a time proportion
basis taking into account the amount
outstanding and the applicable interest rate.

For all financial instruments measured at
amortised cost, interest income is recorded
using the effective interest rate (EIR). EIR is
the rate that exactly discounts the estimated
future cash payments or receipts over the
expected life of the financial instrument
or a shorter period, where appropriate, to
the net carrying amount of the financial
asset or to the amortised cost of a financial
liability. When calculating EIR, the Company
estimates the expected cash flows by
considering all the contractual terms of the
financial instrument but does not consider
the expected credit losses. Interest income
is included in other income in the statement
of profit and loss.

Financial liabilities:

Initial recognition and measurement

The Company's financial liabilities include
trade and other payables and borrowings.

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables as appropriate.

All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

Subsequent measurement

• Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition
as at fair value through profit or loss.
Financial liabilities are classified as held
for trading if they are incurred for the
purpose of repurchasing in the near
term.

• Financial liabilities at amortised cost
(Loans and borrowings)

Financial liabilities are subsequently
measured at amortised cost using the
effective interest method. Gains and
losses are recognised in profit or loss
when the liabilities are derecognised
as well as through the EIR amortisation
process. Amortised cost is calculated
by taking into account any discount
or premium on acquisition and fees or
costs that are an integral part of the
EIR. The EIR amortisation is included in
finance cost in the statement of profit
and loss. For trade and other payables
maturing within one year from the
balance sheet date, the carrying
amounts approximate fair value due to
the short maturity of these instruments.

• Derecognition

A financial liability is derecognised
when the obligation under the liability
is discharged or cancelled or expires.
When an existing financial liability is
replaced by another from the same
lender on substantially different terms,
or the terms of an existing liability
are substantially modified, such an
exchange or modification is treated
as the derecognition of the original
liability and the recognition of a new
liability. The difference in the respective
carrying amounts is recognised in the
statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are
offset and the net amount is reported in
the balance sheet if there is a currently
enforceable legal right to offset the
recognised amounts and there is an intention
to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

(n) Cash and cash equivalents

Cash and cash equivalent in the balance
sheet comprise cash in hand, cash at banks
and short-term deposits with an original
maturity of three months or less, that are
readily convertible to a known amount of
cash and subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash
flows, cash and cash equivalents consist of
cash and short-term deposits, as defined
above, net of outstanding cash credits as
they are considered an integral part of the
Company's cash management.

(o) Dividend

The Company recognises a liability to
make cash distributions to equity holders
of the Company when the distribution
is authorised and the distribution is no
longer at the discretion of the Company.
A corresponding amount is recognised
directly in equity. Final dividends on shares
are recorded as a liability on the date of
approval by the shareholders and interim
dividends are recorded as a liability on the
date of declaration by the Company's Board
of Directors.

(p) Earnings per share

Basic earnings per share is calculated by
dividing the net profit or loss attributable
to equity holders by the weighted average
number of equity shares outstanding during
the year.

Partly paid equity shares are treated as a
fraction of an equity share to the extent that
they are entitled to participate in dividends
relative to a fully paid equity share during
the reporting year. The weighted average
number of equity shares outstanding during
the year is adjusted for events such as bonus
issue and share split that have changed
the number of equity shares outstanding,
without a corresponding change in
resources.

For the purpose of calculating diluted
earnings per share, the net profit or loss
for the period attributable to equity
shareholders and the weighted average

number of shares outstanding during the
period are adjusted for the effects of all
dilutive potential equity shares.

(q) Segment reporting

Operating segments are reported in
a manner consistent with the internal
reporting provided to the Chief Operating
Decision Maker. The Chief Operating
Decision Maker is considered to be the
Board of Directors which makes strategic
decisions and is responsible for allocating
resources and assessing performance of the
operating segments.

(r) Share-based payments

Senior executives and employees of the
Company receive remuneration in the form
of share-based payments, whereby they
render services as consideration for equity
instruments (equity-settled transactions).
The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model.

That cost is recognised, together with a
corresponding increase in share-based
payment (SBP) reserves in equity, over the
period in which the performance and/or
service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting
date reflects the extent to which the vesting
period has expired and the Company's
best estimate of the number of equity
instruments that will ultimately vest. The
expense or credit in the statement of profit
and loss for a year represents the movement
in cumulative expense recognised as at
the beginning and end of that year and is
recognised in employee benefits expense.

Service conditions and non-market
performance condition are not taken into
account when determining the grant date
fair value of awards, but the likelihood of the
conditions being met is assessed as part of
the Company's best estimate of the number
of equity instruments that will ultimately
vest. Market performance conditions are
reflected within the grant date fair value. Any

other conditions attached to an award, but
without an associated service requirement,
are considered to be non-vesting conditions.
Non-vesting conditions are reflected in
the fair value of an award and lead to an
immediate expensing of an award unless
there are also service and/or performance
conditions.

No expense is recognised for awards that
do not ultimately vest because service
conditions and/or non-market performance
condition have not been met. Where
awards include a market or non-vesting
condition, the transactions are treated as
vested irrespective of whether the market or
non-vesting condition is satisfied, provided
that all other performance and/or service
conditions are satisfied.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

When the terms of an equity-settled award
are modified, the minimum expense
recognised is the grant date fair value
of the unmodified award, provided the
original vesting terms of the award are
met. An additional expense, measured as
at the date of modification, is recognised
for any modification that increases the
total fair value of the share-based payment
transaction, or is otherwise beneficial to the
employee. Where an award is cancelled by
the Company or by the counterparty, any
remaining element of the fair value of the
award is expensed immediately through
profit or loss.

2.3 Standards notified but not yet effective

The new and amended standards and
interpretations that are issued, but not yet
effective, up to the date of issuance of the
Company's financial statements are disclosed
below. The Company will adopt this new and
amended standard, when it become effective.

Lack of exchangeability - Amendments to Ind
AS 21

The Ministry of Corporate Affairs notified
amendments to Ind AS 21 The Effects of
Changes in Foreign Exchange Rates to specify

how an entity should assess whether a currency
is exchangeable and how it should determine
a spot exchange rate when exchangeability is
lacking. The amendments also require disclosure
of information that enables users of its financial
statements to understand how the currency
not being exchangeable into the other currency
affects, or is expected to affect, the entity's
financial performance, financial position and
cash flows.

The amendments are effective for annual
reporting periods beginning on or after 01 April
2025. When applying the amendments, an entity
cannot restate comparative information.

The amendments are not expected to have a
material impact on the Company's financial
statements.

2.4 New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective
for annual periods beginning on or after 01 April
2024. The Company has not early adopted any
standard, interpretation or amendment that has
been issued but is not yet effective.

(a) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA)
notified the Ind AS 117, Insurance Contracts,
vide notification dated August 12, 2024,
under the Companies (Indian Accounting
Standards) Amendment Rules, 2024, which
is effective from annual reporting periods
beginning on or after 01 April 2024.

Ind AS 117 Insurance Contracts is a
comprehensive new accounting standard
for insurance contracts covering recognition
and measurement, presentation and
disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to
all types of insurance contracts, regardless
of the type of entities that issue them as
well as to certain guarantees and financial
instruments with discretionary participation
features; a few scope exceptions will apply.
Ind AS 117 is based on a general model,
supplemented by:

• A specific adaptation for contracts
with direct participation features (the
variable fee approach)

• A simplified approach (the premium
allocation approach) mainly for short-
duration contracts

The application of Ind AS 117 does not have
material impact on the Company's separate
financial statements as the Company has
not entered any contracts in the nature of
insurance contracts covered under Ind AS
117.

(b) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian
Accounting Standards) Second Amendment
Rules, 2024, which amend Ind AS 116, Leases,
with respect to Lease Liability in a Sale and
Leaseback. The amendment specifies the
requirements that a seller-lessee uses in
measuring the lease liability arising in a
sale and leaseback transaction, to ensure
the seller-lessee does not recognise any
amount of the gain or loss that relates to
the right of use it retains. The amendment
is effective for annual reporting periods
beginning on or after 01 April 2024 and
must be applied retrospectively to sale and
leaseback transactions entered into after the
date of initial application of Ind AS 116. The
amendments do not have a material impact
on the Company's financial statements.

3 SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTION

The preparation of the Company's financial
statements requires management to make
judgements, estimates and assumptions
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about
these assumptions and estimates could result
in outcomes that require a material adjustment
to the carrying amount of assets or liabilities
affected in future periods.

Other disclosures relating to the Company's
exposure to risks and uncertainties includes:

• Capital management (note 39)

• Financial risk management objectives and
policies (note 38)

• Sensitivity analysis disclosures (notes 34
and 38)

Information about significant areas of estimation
and assumptions / uncertainty and judgements
in applying accounting policies that may have
significant impact are as follows:

(a) Measurement of defined benefit
obligations:

The cost of the defined benefit gratuity
plan and the present value of the gratuity
obligation are determined using actuarial
valuations. An actuarial valuation involves
making various assumptions that may differ
from actual developments in the future.
These include the determination of the
discount rate, future salary increases and
mortality rates. Due to the complexities
involved in the valuation and its long-term
nature, a defined benefit obligation is highly
sensitive to changes in these assumptions.
All assumptions are reviewed at each
reporting date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate, the management considers
the interest rates of government bonds in
currencies consistent with the currencies of
the post- employment benefit obligation.
The mortality rate is based on publicly
available mortality tables. Those mortality
tables tend to change only at interval in
response to demographic changes. Future
salary increases and gratuity increases are
based on expected future inflation rate and
past trends. Further details about gratuity
obligations are given in note 34.

(b) Leases - estimating the incremental
borrowing rate:

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it
uses its incremental borrowing rate (IBR) to

measure lease liabilities. The IBR is the rate
of interest that the Company would have
to pay to borrow over a similar term, and
with a similar security, the funds necessary
to obtain an asset of a similar value to the
right-of-use asset in a similar economic
environment.

(c) Leases - assumptions while considering
lease term:

The Company determines the lease term
as the agreed tenure of the lease, together
with any periods covered by an option to
extend the lease if it is reasonably certain
to be exercised, or any periods covered
by an option to terminate the lease, if it is
reasonably certain not to be exercised. After
the commencement date, the Company
reassesses the lease term if there is a
significant event or change in circumstances
that is within its control and affects its ability
to exercise or not to exercise the option to
renew or to terminate (e.g., construction
of significant leasehold improvements or
significant customisation to the leased asset).

(d) Provision for product warranties:

The product warranty obligations and
estimations thereof are determined using
historical information on the type of
product, nature, frequency and average
cost of warranty claims and the estimates
regarding possible future incidences of
product failures. Changes in estimated
frequency and amount of future warranty
claims, which are inherently uncertain, can
materially affect warranty expense.

(e) Provision for expected credit loss on trade
receivables:

The measurement of expected credit loss
reflects a probability-weighted outcome,
the time value of money and the best
available forward-looking information. The
correlation between historical observed
default rates, forecast economic conditions
and expected credit loss is a significant
estimate. The amount of expected credit
loss is sensitive to changes in circumstances
and forecasted economic conditions. The

Company's historical credit loss experience
and forecast of economic conditions may
not be representative of the actual default in
the future.

(f) Share-based payments:

In accordance with the Ind AS 102 Share
Based Payments, the cost of equity-settled
transactions is measured using the fair value
method. The cumulative expense recognised
for equity-settled transactions at each

reporting date until the vesting date reflects
the extent to which the vesting period has
expired and the Company's best estimate
of the number of equity instruments that
will ultimately vest. The expense or credit
recognised in the Statement of profit and
loss including other comprehensive income/
loss for a year represents the movement
in cumulative expense recognised as at
the beginning and end of that year and is
recognised in employee benefits expense.

Nature and purpose of reserves

(a) Pertains to capital reserve created on account of business combination during the year ended 31 March
2019 as per the requirements of Ind AS 103 - Business Combinations.

(b) Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of
net income at a specified percentage in accordance with applicable regulations. Such amount can be
utilised in accordance with the specific requirements of Companies Act, 2013.

(c) Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers
to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re¬
measurement gain/(loss) on defined benefit plans, net of taxes that will not be reclassified to Statement
of Profit and Loss.

(d) The Company recognises changes in the fair value of debt instruments held with business objective
of collect and sell in other comprehensive income. These changes are accumulated within the debt
instruments through other comprehensive income within equity. The Company transfers amounts
from this reserve to the statement of profit and loss when the debt instrument is sold. Any impairment
loss on such instruments is reclassified immediately to the statement of profit and loss.

(a) The overall sanctioned facility of loan is ' 220 million (fund based) and ' 70 million (non-fund based)
repayable on demand. The lending rate is based on marginal cost of funds (MCLR) plus 0.15%. The loan
is secured against inventories, trade receivables and other current assets and collateral security includes
equitable mortgage of factory land and building at Plot No. 16 and 17 measuring 121,460 Sq. Ft (Survey
No. 95 and 97 Bashettiha 11 i Village) KIADB Industrial Area, Doddaballapur - 561 203. Cash collateral in the
form of investment in SBI Mutual Fund. The collateral security also includes personal guarantee of the
directors, Mr. Krishnaswamy Vijay and Mr. Jacob Jiten John (note 35). As at 31 March 2025, the Company
had available ' 272.52 million (31 March 2024 : ' 215.91 million) of undrawn committed borrowing facilities
under this facility.

Secured cash credit from banks contain certain financial covenants relating to adverse deviation in
respect of any two of the following financial parameters (DSCR, Interest coverage ratio, FACR, Debt /
EBIDTA) and attracts penal interest. It also contains few non-financial covenants. The Company has
satisfied all the covenants prescribed in the terms of bank loan. The Company has not defaulted on any
interest payable.

(b) (i) The overall sanctioned facility of working capital demand loan is ' 50 million (31 March 2024: ' 50

million) with a tenor of 180 days. The lending rate is based on MCLR plus spread (MCLR plus 0.55%).

The sanctioned facilities are unsecured.

(ii) The overall sanctioned facility of working capital demand loan is ' 150 million (31 March 2024: ' 150
million) with a tenor of 90 days (including cash credit of ' 10 million and Letter of credit, Standby
Letter of Credit of ' 30 million repayable on demand, MTM limit of ' 40 million). The lending rate is
based on MCLR plus spread. The sanctioned facilities are unsecured.

As at 31 March 2025, the Company had available ' 200 million (31 March 2024 : ' 200 million) of
undrawn committed borrowing facilities under these facilities.

Unsecured cash credit from banks carry few non-financial covenants. The Company has satisfied
all the covenants prescribed in the terms of bank loan.

(c ) The Company has been sanctioned working capital limits in excess of ' 50 million in aggregate from
banks during the year on the basis of security of current assets of the Company. The quarterly statements
filed by the Company for the year ended 31 March 2025 are in line with revised submission made by
the Company with such banks. Further, the quarterly statement filed by the Company for the relevant
period with such banks are in agreement with the books of account other than those as setout below:

Notes:

(a) Leasehold Land includes land allotted by KIADB amounting to ' 151.58 million for a period of 99 years.
Such land is held in the erstwhile name of the Company.

(b) Further, in respect of this leasehold land, during the year ended 31 March 2024, the Company had received
a notice from KIADB demanding additional price of ' 79.60 million on determining the final lease price
in respect of the land considering the expenditure incurred by KIADB towards the compensation for
the lands acquired, providing the infrastructure facilities and also for the maintenance of industrial area.
During the year ended 31 March 2025, the Company has paid ' 0.82 million towards maintenance. The
Company, on review of all the available documents and materials, is of the view that it is practically not
feasible to ascertain or estimate the incremental amount that may be finally determined or levied by
KIADB. Accordingly, management had filed response to KIADB price revision notice seeking details of
the factors that have been taken into account for determination of incremental land cost. The response
from KIADB is awaited.

32 SEGMENT INFORMATION

The Company operates as a single business segment based on its products and has one reportable
segment, namely "manufacturer of concrete equipment”. Accordingly, separate disclosure for business
segment is not applicable. The Company's Chief Operating Decision Maker (CODM) is the Board of Directors
of the Company which regularly reviews the financial performance of the Company as a whole. The CODM
monitors the operating results of its single business unit for the purpose of making decisions about resource
allocation and performance assessment.

(iii) The Company had undertaken a bonus issuance of its equity shares in 30 March 2009 where equity
shares of face value of T100 each were issued to both resident and non-resident shareholders. This
included allotment of 97,500 equity shares of face value of ^100 each to Fiori SPA on 30 March
2009. The Company has filed form FC-GPR on 25 September 2024 with the Reserve Bank of India
('RBI'). Based on the clarifications and additional information sought by RBI, the Company has
re-filed Form FC-GPR on 06 November 2024 and further on 21 November 2024. Subsequently,
the Form FC-GPR was approved by RBI on 28 November 2024. RBI has advised the Company
to file the compounding application with Bangalore Regional Office. The Company has filed the
compounding on 23 January 2025. In response RBI through its e-mail dated 15 May 2025, highlighted
additional contraventions, and sought confirmation from the Company to re-submit the revised
compounding application considering additional contraventions. In response the Company re¬
submitted revised compounding application on 22 May 2025. The Company may be subjected
to fines and penalties as part of compounding proceedings as a result of these contraventions.
Management based on the advice obtained from its consultants is confident of a favourable
outcome and does not expect any material financial implications against the above matters.

34 EMPLOYEE BENEFIT OBLIGATIONS
A Gratuity plan

The Company has a defined benefit gratuity plan (funded) for its employees. The gratuity plan is governed
by the Payment of Gratuity Act, 1972. Under the Payment of Gratuity Act, 1972, employee who has completed
five years of service is entitled to specific benefit. The level of benefits provided depends on the length of
service and salary at retirement age.

The average duration of the defined benefit plan obligation at the end of the twelve months reporting
period is 7.64 years (31 March 2024: 7.32 years).

Risk exposure and asset liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder:

1 Liability risks

(a) Asset-Liability Mismatch Risk :

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching
duration with the defined benefit liabilities, the Company is successfully able to neutralise valuation
swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability
management.

(b) Discount Rate Risk :

Variations in the discount rate used to compute the present value of the liabilities may seem small, but
in practise can have a significant impact on the defined benefit liabilities.

(c) Future Salary Escalation and Inflation Risk :

Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher
present value of liabilities especially unexpected salary increases provided at management's discretion
may lead to uncertainties in estimating this increasing risk.

2 Asset risks

All plan assets are maintained in a trust fund managed by a private sector insurer viz; Kotak Mahindra
Life Insurance Ltd.

The Company has opted for a unit-linked fund which is market linked with options to invest in equity
funds. The Company has the option to structure the portfolio based on its risk appetite providing an
opportunity to earn market linked returns. But there is an investment risk here which is borne by the
company. A single account is maintained for both investment and claim settlement and hence 100%
liquidity is ensured.

B Other retirement benefits

The Company also has a retirement benefit plan (unfunded) for certain eligible employees wherein the
specified eligible employees are paid retirement benefit equivalent to 10-15 days of last drawn salary for
each completed year of service. As at 31 March 2025, the Company has created a provision of ' 7.44 million
(31 March 2024: '9.33 million) for the said plan.

C Provident Fund

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are
defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to
contribute a specified percentage of the payroll costs to fund the benefits. During the year ended 31 March
2025, the Company recognised ' 45.94 million (year ended 31 March 2024'35.91 million) towards such
contribution in the Statement of profit and loss. The contributions payable to these plans by the Company
are at rates specified in the rules of the schemes.

36 SHARE BASED PAYMENTS
Employee stock option

The shareholders of the Company, at the General Meeting held on 24 September 2024, approved the
Employee Stock Option Plan 2024 ("ESOP 2024” or "the Plan”) through a special resolution. The Plan
comprises two schemes: AJAX Employee Stock Option Scheme 2024 - Scheme I and Scheme II, effective
from 01 December 2024 ("Effective Date”).

The Company has granted stock options to certain employees and key managerial personnel under the
above two schemes which were approved by the Board of Directors on 21 January 2025. The key terms and
conditions are as follows:

Scheme I : 205,077 options granted to employees, key managerial personnel and senior managerial personnel
Scheme II: 1,162,132 options granted to key managerial personnel and senior managerial personnel
Each option, upon exercise, will entitle the holder to receive one equity share having face value of ' 1/- each,
fully paid up.

Exercise price for Scheme I and Scheme II:

Scheme I - ' 1 for 205,077 options

Scheme II - ' 262 for 1,144,068 options and ' 1 for 18,064 options
Vesting schedule for Scheme I and Scheme II:

Subject to continued employment the options granted under Scheme I shall vest as under:

30% of the options shall vest at the end of the 2^nd anniversary from the grant date
30% of the options shall vest at the end of the 3^rd anniversary from the grant date
40% of the options shall vest at the end of the 4^th anniversary from the grant date
Subject to continued employment the options granted under Scheme II shall vest as under:

For 1,144,068 options, 100% of the options shall vest at the end of the 1^st anniversary from the grant date. For
18,064 options granted shall vest 50% at the end of the 1^st anniversary from the grant date and 50% shall vest
at the end of the 2^nd anniversary from the grant date.

The expense recognised for employee services received based on the above mentioned schemes during
the year ended 31 March 2025 is ' 43.32 million (31 March 2024: ' 37.23 million) and the carrying amount of
liability reflected in Employee stock option outstanding reserve is ' 80.55 million as at 31 March 2025 (As at
31 March 2024: ' 37.23 million).

There were no cancellations or modifications to the awards in the year ended 31 March 2025 and 31 March
2024.

Movements during the year:

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements
in, share options during the year:

The Company categorises fair value measurements using a fair value hierarchy that is dependent on
the valuation inputs used as follows:

a. Level 1 - Quoted prices (unadjusted) in an active market for identical assets or liabilities that the
Company can assess at the measurement date

b. Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly or indirectly

c. Level 3 - Unobservable inputs for the assets or liabilities.

The management assessed that cash and cash equivalents, other bank balances, trade receivables,
bank deposits, trade payables, borrowings, lease liabilities (current), other current financial assets and
other current financial liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments.

There have been no transfers between Level 1 and Level 2 during the year ended 31 March 2025 and 31
March 2024.

The following methods and assumptions were used to estimate the fair values:

The fair values of the Company's investment in mutual funds are based on the market values (Level 1)
prevailing as at the year end date. The fair values represent net asset value as stated by the issuers of
these mutual fund units in the published statements. Net asset values represent the price at which the
issuer will issue further units in the mutual fund and the price at which issuers will redeem such units
from the investors.

The fair values of the Company's investment in bonds and NCDs are based on the quotes provided by
the bank (Level 2) prevailing as at the year end date. The fair values represent net asset value as stated
by the issuers of these bonds and NCDs in the bond market.

58 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities comprise of borrowings, lease liabilities, trade and other payables.
The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include security deposits, bank deposits, trade receivables and cash and cash
equivalents that derive directly from its operations. The Company also holds investments in mutual funds,
bonds and NCDs.

The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior management
oversees the management of these risks. The Board of Directors review and agree policies for managing
each of these risks, which are summarised below. The Company's risk management policies are established
to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to
monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Company's activities.

(a) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating
activities (primarily trade receivables) and from its financing activities, including deposits with
banks, foreign exchange transactions and other financial instruments. The Company evaluates the
concentration of risk with respect to trade receivables and contract assets as low, as its customers are
located in several jurisdictions.

(i) Trade receivables and contract assets:

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of
its customer base, including the default risk associated with the industry and country in which
customers operate.

Customer credit risk is managed by the Company subject to the Company's established policy,
procedures and control relating to customer credit risk management. Outstanding customer
receivables are regularly monitored. To manage this, the Company periodically assesses the
financial reliability of customers, taking into account the financial condition, current economic
trends, and analysis of historical bad debts and ageing of trade receivable. The Company creates
allowance for all trade receivables based on lifetime expected credit loss model (ECL).

The Company considers a financial asset in default when contractual payments are 365 days
past due. However, in certain cases, the Company may also consider a financial asset to be in
default when internal or external information indicates that the Company is unlikely to receive
the outstanding contractual amounts in full before taking into account any credit enhancements
held by the Company. A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets disclosed in note 37.

(ii) Otherfinancialassets

Other financial assets includes investments, cash and bank balances security deposits and interest
receivable which are placed with a reputable financial institution with high credit ratings and no
history of default.

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company's
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to
meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company's reputation.

The Company assessed the concentration of risk with respect to financial liabilities and concluded it to
be low.

The Company's principal sources of liquidity are cash and cash equivalents, short term investments
and the cash flow that is generated from operations. The Company believes that the cash and cash
equivalents and short term investments are sufficient to meet its current requirements. Accordingly, no
liquidity risk is perceived.

Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted contractual cash flow, and include contractual interest payments
and exclude the impact of netting agreements.

(c) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates
and equity prices, which will affect the Company's income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.

The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March
2024.

41 OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property under the Benami Transactions (Prohibition)
Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

(v) The Company has not advanced or loaned or invested funds to any other person or entity, including
foreign entities (intermediaries) with the understanding that the intermediary shall :

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries,

(vii) The Company has not entered into any such transaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the period in the tax assessments under the
Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other
lender.

(ix) The Company has complied with the relevant provisions of the Foreign Exchange Management Act,
1999 (42 of 1999) and the Companies Act for the above transactions and the transactions are not violative
of the Prevention of Money-Laundering Act, 2002 (15 of 2003).

(x) The Company does not have any transaction / scheme of arrangements which requires approval from
the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

42 (a) During the year ended 31 March 2025, the Company has maintained its books of account in electronic

mode and these books of account are accessible in India at all times and the back-up of books of
account has been kept in servers physically located in India on a daily basis except for one accounting
software.

(b) The Company has used accounting softwares SAP, Ajaxone (Dealer/Customer management system)
and Leave Management System (LMS) for maintaining its books of account which has a feature of
recording audit trail (edit log) facility which was not enabled throughout the year for all relevant
transactions recorded in the software except for one accounting software for which such feature was
enabled at application level from 20 March 2025. Additionally, the Company did not record audit trail in
respect of the year ended 31 March 2024.

43 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by
the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft
rules for the Code on Social Security, 2020 on 13 November 2020, and has invited suggestions from stakeholders
which are under active consideration by the Ministry. The Company will assess the impact and its evaluation
once the subject rules are notified and will give appropriate impact in its financial statements in the period in
which, the Code becomes effective and the related rules to determine the financial impact are published.

44 During the year ended 31 March 2025, the Company has completed its Initial Public Offering (IPO) of
20,180,446 equity shares with a face value of ' 1 each at an issue price of ' 629 per share (includes employee
reservation portion of 78,947 equity shares with a face value of ' 1 each at an issue price of ' 570), consisting
entirely of offer for sale of 20,180,446 shares. The total proceeds on account of offer for sale is ' 12,688.84
million. The Company's equity shares were listed on the National Stock Exchange of India Limited (NSE) and
BSE Limited (BSE) on 17 February 2025. Also, refer Note 6(b).

As per our report of even date

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants Ajax Engineering Limited (formerly Ajax Engineering Private Limited)

ICAI Firm Registration Number: 101049W/E300004

per Rajeev Kumar Shubhabrata Saha K. Vijay

Partner Managing Director and CEO Chairman and Director

Membership No.: 213803 DIN: 03036747 DIN: 00642715

Place: Bengaluru Place: Bengaluru Place: Bengaluru

Date: 27 May 2025 Date: 27 May 2025 Date: 27 May 2025

Tuhin Basu Shruti Vishwanath Shetty

Chief Financial Officer Company Secretary

Membership No.: A33617

Place: Bengaluru Place: Bengaluru

Date: 27 May 2025 Date: 27 May 2025